Liens are mainly associated with suppliers and subcontractors. In case, general contractor you had hired to remodel your building does not pay suppliers, court may order lien to be placed on building until money is recovered. It does not matter whether you paid contractor or not. Suppliers and subcontractors are given chance by the law to seek payment from you in case general contractor is unable to pay. This makes it necessary for you to understand Mechanics Lien NY before hiring contractors.
Liens were introduced with intention of enhancing discipline in construction industry. Since people started applying them, undisciplined contractors have been eliminated out of construction industry. This is because those who have history of not paying subcontractors fail to have customers, hence collapsing. On the other hand, items of some of general contractors who fail to pay customers are sold, hence collapsing.
To apply mechanic lien successfully, subcontractors are not only supposed to be knowledgeable, but also patient. They need to follow procedure carefully and strictly failure to which their chances of being successful are minimal. Contractors must have documents to prove that indeed, they were not paid. Other information they must have includes; contract amount, project location, work done and project type. Subcontractors may not be successful unless they follow procedure discussed below.
It is important for supplier to inform project owner on kind of goods, he or she supplies. This information must be revealed to homeowner in the first thirty days after delivery. If contractor fails to pay him or her as per the agreement, then supplier should consider consulting project owner concerning this issue. In case, discussions are not fruitful within the six months, supplier should consider filing case in the court. Mechanics lien can only be applicable only if supplier sues contractor in time. There are various techniques, you as a contractor may apply to prevent yourself from encountering these problems.
Before hiring a contractor you need to comprehend what is contained in mechanics lien. Knowledge acquired will enable you come up with workable strategies, which will shield you from challenges that arise when contractors fail to meet demands of supplies. Consider coming up with a way in which checks issued to general contractors are cashed after endorsement by suppliers. This is one of the best methods you can use.
You may decide to avoid negative effects of mechanics liens by paying subcontractors. Amount used during this payment is deducted from amount to issue general contractor. This method is least used. This method makes you look as if you have employed both contractors and subcontractors, hence making your task a bit challenging.
Another method of evading liens is by choosing to work with general contractors, who have acquired lien waivers from service providers they are supposed to pay. For this case, homeowner should instruct contractor to provide waiver immediately after payment for a given service, before further payment is made.
Proper preservation of documents concerning subcontractors, general contractors and even suppliers are beneficial. These documents tend to confirm that a certain transaction took place. Such documents are useful during court proceedings because they are used as evidence. Keeping such documents safely is beneficial.
Liens were introduced with intention of enhancing discipline in construction industry. Since people started applying them, undisciplined contractors have been eliminated out of construction industry. This is because those who have history of not paying subcontractors fail to have customers, hence collapsing. On the other hand, items of some of general contractors who fail to pay customers are sold, hence collapsing.
To apply mechanic lien successfully, subcontractors are not only supposed to be knowledgeable, but also patient. They need to follow procedure carefully and strictly failure to which their chances of being successful are minimal. Contractors must have documents to prove that indeed, they were not paid. Other information they must have includes; contract amount, project location, work done and project type. Subcontractors may not be successful unless they follow procedure discussed below.
It is important for supplier to inform project owner on kind of goods, he or she supplies. This information must be revealed to homeowner in the first thirty days after delivery. If contractor fails to pay him or her as per the agreement, then supplier should consider consulting project owner concerning this issue. In case, discussions are not fruitful within the six months, supplier should consider filing case in the court. Mechanics lien can only be applicable only if supplier sues contractor in time. There are various techniques, you as a contractor may apply to prevent yourself from encountering these problems.
Before hiring a contractor you need to comprehend what is contained in mechanics lien. Knowledge acquired will enable you come up with workable strategies, which will shield you from challenges that arise when contractors fail to meet demands of supplies. Consider coming up with a way in which checks issued to general contractors are cashed after endorsement by suppliers. This is one of the best methods you can use.
You may decide to avoid negative effects of mechanics liens by paying subcontractors. Amount used during this payment is deducted from amount to issue general contractor. This method is least used. This method makes you look as if you have employed both contractors and subcontractors, hence making your task a bit challenging.
Another method of evading liens is by choosing to work with general contractors, who have acquired lien waivers from service providers they are supposed to pay. For this case, homeowner should instruct contractor to provide waiver immediately after payment for a given service, before further payment is made.
Proper preservation of documents concerning subcontractors, general contractors and even suppliers are beneficial. These documents tend to confirm that a certain transaction took place. Such documents are useful during court proceedings because they are used as evidence. Keeping such documents safely is beneficial.
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